In This Article:
-
Revenue: $23.8 million, up 12% year-over-year.
-
Gross Profit: $20.9 million, a 15% increase from the previous year.
-
Gross Margin: Improved to 87.8%, up from 85.4% in the prior year.
-
EPS: Net loss of $0.04 per share, an improvement of $0.01 from the previous year.
-
Operating Cash Flow: $1.3 million for the quarter.
-
Free Cash Flow: $0.7 million for the quarter.
-
Cash Balance: $13.1 million at quarter end.
-
Member Count: Grew to 867,000 members.
-
Annualized Gross Profit per Employee: Increased to over $800,000, up from $680,000 a year ago.
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Gaia Inc (NASDAQ:GAIA) reported a 12% increase in revenue and a 15% increase in gross profit for Q1 2025.
-
The company's gross margin improved to 87.8%, up from 85.4% in the previous year.
-
Member count grew to 867,000, with a focus on high lifetime value members.
-
Gaia Inc (NASDAQ:GAIA) is embracing an AI-first strategy, with plans to launch a conscious AI companion by early 2026.
-
The company successfully raised $8 million in a stock offering, which is being allocated to AI development and community initiatives.
Negative Points
-
Marketplace revenue was lower than expected, leading to a 1% revenue miss in Q1.
-
A U.S. Level 3 travel advisory for Egypt impacted the company's marketplace performance.
-
Q2 is expected to be softer than anticipated due to marketplace challenges.
-
The company reported a net loss of $0.04 per share, despite improvements in EPS.
-
The transition of the CEO role may introduce uncertainties in leadership dynamics.
Q & A Highlights
Q: Can you provide an update on the Igniton launch timeline? A: Jirka Rysavy, Chairman and CEO, stated that the Igniton brand will be introduced at the Biohacking Conference at the end of the month, with a market launch planned after July 4th.
Q: Is the CEO transition happening at the end of Q2? A: James Colquhoun, COO, confirmed that Kiersten Medvedich will assume the CEO role at the end of Q2, while he will focus on high-level licensing opportunities to expand Gaia's revenue and market perception.
Q: How is AI being integrated into Gaia's platform? A: James Colquhoun explained that AI will be integrated into Gaia's current product line, allowing members to interact with generative AI within the app or web platform. This will enable deeper content interaction and enhance user engagement.
Q: Are there any plans for content or technology licensing deals? A: James Colquhoun mentioned that while no deals have been struck yet, there are ongoing discussions about content and technology licensing opportunities for both Gaia and Igniton, which could significantly impact the business.